SBTi (Science Based Targets initiative)

ESRS (European Sustainability Reporting Standards)

How do SBTi and ESRS affect the way companies operate?

Non-financial reporting is an important step in how companies act on climate protection. ESG (Environmental, Social, Governance) is becoming increasingly common among Polish businesses. The term refers to three core areas that shape the quality of a company’s activities: environmental impact, social responsibility and corporate governance. Reporting in these areas helps organisations better understand potential risks and opportunities, and identify where they can improve their performance for the benefit of both the environment and society.

To support companies in this process, a number of principles, guidelines and support programmes have been developed that enable reliable and consistent ESG reporting. Two of the key frameworks are SBTi and ESRS.

1. SBTi (Science Based Targets initiative)

The Science Based Targets initiative (SBTi) is a partnership between CDP, the UN Global Compact, the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). Its purpose is to help companies set science-based targets for reducing greenhouse gas emissions. The initiative enables businesses to align their climate objectives with global climate goals, such as those set out in the Paris Agreement.

SBTi provides tools and guidelines for defining climate targets, as well as support in implementing them. Companies that join the initiative can benefit from expert advice and have their climate targets validated and certified. To date, more than 4,000 companies worldwide have joined SBTi and committed to reducing their greenhouse gas emissions in line with scientific recommendations.

2. ESRS (European Sustainability Reporting Standards)

European Sustainability Reporting Standards (ESRS) are the sustainability reporting standards applied by companies in Europe. They focus on how companies report their activities in the areas of environment, social issues and corporate governance. ESRS enables investors and other stakeholders to track companies’ progress on sustainability and make better informed investment and business decisions.

Many companies in Europe are already applying ESRS to increase transparency and accountability for their sustainability performance and to respond to growing regulatory and market expectations.

3. How SBTi and ESRS affect companies

It is important to emphasise that SBTi and ESRS are not frameworks designed exclusively for large corporations. Small and medium-sized enterprises (SMEs) can and should also engage in these initiatives. By doing so, they contribute to climate action, operate more responsibly towards the environment and strengthen their reputation and relationships with customers and investors.

For smaller suppliers, the most important factor is often their relationship with large companies, which are currently rolling out ambitious “green” strategies in response to regulatory requirements. Both SBTi and ESRS are particularly relevant for the automotive and food sectors in Poland, largely due to supply chain links with major contractors that are already implementing sustainable development strategies and requiring, among other things, carbon footprint data from their suppliers.

The food sector has a significant impact on natural resources and public health, which is why many companies in this industry have joined initiatives to reduce their environmental footprint. Food companies that commit to SBTi undertake to set science-based greenhouse gas reduction targets, aligning their actions with UN climate goals. Reporting in line with ESRS allows these companies to disclose their sustainability performance, helping investors and consumers assess their progress.

It is also worth noting that an increasing number of investors require companies to provide non-financial disclosures. This means that climate action and social responsibility are becoming critical elements of long-term business success, not just add-ons or marketing narratives.

The conclusion is straightforward: acting on climate and social responsibility is not only an ethical imperative, but also a necessity for companies that want to operate in line with current market trends and regulatory expectations. Frameworks such as SBTi and ESRS help organisations adapt to these requirements and support them in delivering on climate goals.

At Envirly, we offer solutions for managing an organisation’s carbon footprint, enabling companies to better understand and control their greenhouse gas emissions. This is a key element in aligning with the requirements of both SBTi and ESRS and in building a credible, future-oriented sustainability strategy.